The Mheda Journal

Today is Earth Day; it’s the 40th anniversary of Earth Day, in fact. I learned yesterday that the impetus for Earth Day was the day when my hometown Cuyahoga River notoriously caught on fire near Cleveland, Ohio. Can’t say I was proud to learn that fact, but at least something positive came out of that debacle. (Well, two things, if you count the song “Burn On” by Randy Newman.)

Earth Day seems like as good a time as any to talk about the continuing efforts of our industry to go green and help end-users of material handling equipment (which is virtually everyone) do the same.

The material handling industry is at the forefront of the sustainability movement, whether it’s:

• Reducing forklift emissions
• Warehouses that go up instead of out and preserve more green space
• Turning off power to certain parts of a customer’s warehouse when not in use
• Encouraging adherence to green building codes
• Embracing alternative fuels
• Increasing remanufacturing opportunities.

And just today, I read about a study finding that logistics companies made commitments to sustainability during the recession.

Consider this a tribute to our industry. Keep up the good, green work! (Editor’s note: See The MHEDA Edge Editor’s Blog to read another perspective on Green Material Handling.) Happy Earth Day, everyone!

At long last, the Second Quarter (April) issue of The MHEDA Journal is back from the printer and being distributed to MHEDA members. Those of you traveling to upcoming material handling equipment trade shows can also pick up a copy at NA2010 in Cleveland in two weeks or at the MHEDA Annual Convention & Exhibitors’ Showcase next month.

This issue plays off the MHEDA Convention’s theme of “The Rules Have Changed,” and is chock-full of articles from distributors about how they’re changing the rules at their companies to drive profits. See how M & G Materials Handling (East Providence, RI) President Ken MacDonald has improved productivity by implementing 5s procedures. Read how Bill Rowan, president of Sunbelt Industrial Trucks (Dallas, TX), has instituted more strict credit policies to ensure better cash flow. Learn what Ted Springer, president of Springer Equipment Company (Birmingham, AL), is doing to diversify his product mix, and many more!

This issue also features articles from speakers at the Annual Convention, on topics from marketing to sales intelligence to thinking creatively and more. So even if you can’t make it to Marco Island, you can still receive some of the benefit by taking a look at this quarter’s issue.

It’s all available online now and is being mailed to subscribers this week. I’d love to hear your feedback. Leave a comment here or send an e-mail to editor@TheMhedaJournal.org. Thanks for reading!

I was on vacation for a few days last week and spent some time cruising around Southern California. I had been there before but always had a destination and a reason in mind, and never really took any time to explore beyond my immediate destination.

This time, though, I had some free time to relax and soak it all in. Looking back on it, it’s amazing how much material handling I saw, really in every way. Traveling around Long Beach, i saw the port filled with huge barges loaded with hundreds of shipping containers. I saw cranes and hoists being used to unload those ships.

I saw forklifts in action, at every size business, from a tattoo parlor in Venice Beach using a truck to unload what looked to be large ink canisters, to the Hollywood Walk of Fame using one to haul some new granite for a new sidewalk star (I think it was Russell Crowe’s), to a shipyard in San Diego.

I saw industrial storage rack in the place where we picked up our rental car, and I saw conveyors both at the airport and at a cruise ship boarding station we rode our bikes past.

Most people don’t know it, but material handling is everywhere! Making that awareness more prevalent is the purpose of MHEDA’s Industry Advocacy committee, and the good news is, they have a lot of material to work with. Even on vacation, I can’t escape it!

I can’t believe how fast time flies. It seems like it wasn’t very long ago that I was leaving Palm Desert, CA, after last year’s MHEDA Convention.

Now, it’s only three and a half weeks until the 55th installment of MHEDA’s Annual Convention and Exhibitors’ Showcase. It takes place May 1-5 in Marco Island, FL. MHEDA has been to Marco Island several times, most recently in 2005. That was my first visit, and I’m excited to be heading back. What a great locale!

Beyond that, this year’s Convention should prove to be a valuable one thanks to the strong speaker lineup and networking opportunities. With the industry taking a hit over the last few years, the MHEDA Convention is a great way to re-introduce yourself to suppliers, distributors and customers that you may not have heard from in a while. All the material handling industry’s heavy hitters will be there!

This year’s theme is The Rules Have Changed, a nod to the changing environment that we’ve endured this past several months. Speakers will present on topics ranging from marketing your business to profitability improvement, from to strategic planning to sales intelligence.

My colleagues and I will be there documenting the event. If you want your name and photo in The MHEDA Connection daily newsletter that’s going to be published there, seek us out! (I hope I didn’t scare everyone away!) I look forward to seeing you there!

In the next issue of The MHEDA Journal, we feature several articles from speakers at the upcoming MHEDA Convention (May 1-5 in Marco Island, FL). One such article is from MHEDA Member Barry Lauterwasser, president of Symbion Marketing, who has some interesting ideas about promoting of small distribution companies. Lauterwasser previously worked at a forklift distributor before venturing out on his own, and has some pretty interesting ideas about how to market a small business.

He says:

Often times, promotion has been viewed as an expense—some would say, “I spent $5,000 on a direct mail program and nothing happened.” That’s the equivalent of spending a day in the gym and assuming exercise is a waste of time because you didn’t lose weight. Products in our business are bought, not sold. You have to be there when a product or service is needed, or at least close to being needed. No one buys a lift truck simply because you have it on sale. There has to be a need for one, and if you’re continually pounding your messages home, you are much more likely to get that call, that opportunity, once the need arises (the payback).

To me, this was interesting. “Nobody buys a lift truck just because you have it on sale.” I’m guessing the same is true with any similar large capital investment, i.e. a conveyor system or large racking installation. That’s why marketing is more important than ever. You want to be on the tip of the buyer’s tongue as the go-to provider of a certain product.

Over the years, I’ve talked to many distributors who struggle with this issue. What is the right marketing mix? How much should they spend? What media is the best? What’s a good ROI? I certainly don’t know the answers to these questions, but you can find out at the MHEDA Convention.

So I’m little late getting to this, since the press release is dated January 12, but I still wanted to talk about this topic because I know MHEDA members find it increasingly important.

The state of California has approved the nation’s first mandatory statewide green building standards code, according to an article on logistics.about.com. Effective January 1, 2011, the code, known as CALGreen, requires all new buildings in the state to be more energy efficient and environmentally responsible, including mandates that every new building reduce water consumption by at least 20%. Other requirements say that 50% of construction waste be diverted from landfills and installation materials must emit “low amounts” of indoor pollutants. “The California Air Resources Board (CARB) estimates that the mandatory requirements will reduce greenhouse gas emissions by the equivalent of 3 million metric tons of carbon dioxide in 2020.”

As material handling distributors seek to do more and more for their customers, I know that many MHEDA members have pointed out building codes as one of the things they need to be constantly aware of. These regulations are constantly changing and can vary drastically from municipality to municipality. With California adopting this measure, other states can be sure to follow.

Read more about this new regulation here at http://logistics.about.com/b/2010/02/03/new-green-california-building-code.htm.

The First Quarter issue of The MHEDA Journal is now available online at www.TheMhedaJournal.org. It is being mailed out to subscribers today. As I’ve been telling you for a while, this issue is our annual industry forecast issue, featuring commentary from distributors, suppliers and other industry associations about their expectations for 2010. This special “10 issue” for 2010 features a series of Top 10 Lists to bring in the new year.

Check it out today!

To anyone in the material handling industry (and others, too) interested in contributing to the relief effort in Haiti, take note:

In the wake of Tuesday’s tragic earthquake in Haiti, MHEDA is working with the American Logistics Aid Network (ALAN) and major humanitarian relief agencies to identify the most critical relief needs.

 As needs are identified that can be met through the expertise and resources of ALAN’s member base, MHEDA Members will be notified, and the needs will be posted on the ALAN web portal: www.ALANaid.org.  

 “While ALAN’s focus has been primarily domestic, our mission is to engage the supply chain community to support humanitarian relief efforts wherever the need arises,” says Jock Menzies, ALAN president. “Our hearts go out to the people of Haiti, and we’re eager to support their needs through our network of supply chain professionals.”

To those of us who spent last night watching TCU play Boise State in the Fiesta Bowl, we made the wrong decision. Airing at the same time on ABC was a new reality show, Conveyor Belt of Love. Think of it as speed dating meets material handling.

A series of single men rode a conveyor belt to the middle of a stage, where their dating worthiness was judged by five single ladies. The women could ask questions of the men and elect to go on a date or let them pass on the conveyor and out of the way forever.

Had I known about this sooner, there is no doubt that I would have penciled this in as must-see tv and definitely would have alerted you to it in this space. As it is, we’ll each have to settle for this clip.

I’m not much for “reality” shows, particularly reality dating shows, and my official review of this one is that it’s about as good as you’d expect. But, hey, whatever gets material handling out into the mainstream, right?

For now, this was a one-time special show made to conicide with the premiere of the new season of The Bachelor. That’s probably enough.

Good news for all you fans of The MHEDA Journal out there: the next issue is at the printer and will be mailed out in mid-January! This issue is our Annual Industry Forecast issue, and we went straight to the source again this year: We talked to more than 50 distributors and 70 suppliers to find out how the industry is really going to take shape in 2010. We also have viewpoints from the presidents of the Industrial Truck Association and the Conveyor Equipment Manufacturers Association, and a forecast from the Material Handling Industry of America.

Complete with quotes, charts, graphs, and more, this year’s forecast is definitely worth a read. Uncertainty in the economy is starting to clear up a bit, so MHEDA members are renewed with optimism for 2010. About 68% of distributors forecast a sales increase next year.

Keep reading in this space up until the publish date (January 15) for more specific details.